Walker’s Shortbread has reported resilient full-year sales of £197 million for 2025, a modest 2% decline on the previous year, as the iconic Scottish brand navigated a complex and volatile trading environment.
The 128-year-old, family-owned business confirmed that both domestic and international markets presented challenges throughout the year. In the UK, more cautious customer ordering patterns impacted performance, while in the United States – a key export market – trading conditions were affected by tariff implementations.
Despite these pressures, Walker’s maintained strong global demand, exporting around half of its production to approximately 100 international markets.
Operating profit fell to £6.9 million, down from £16.1 million in 2024, reflecting a convergence of cost pressures across the business. Among the most significant factors was a sharp increase in wholesale butter prices, alongside continued volatility in global supply.
The company also faced rising labour costs and ongoing sector-wide staffing shortages, which led to increased reliance on premium-paid overtime. In addition, escalating utility and commodity prices further impacted overall margins.
Walker’s confirmed it remains committed to long-term growth, with planned capital expenditure focused on boosting capacity and improving operational efficiency. The business highlighted its strong balance sheet and liquidity as key enablers of continued investment.
The company is also pursuing efficiencies through competitive tendering and longer-term supplier contracts, while continuing to invest in its workforce, operations and brand development.
Leadership refresh supports future growth
During the year, Walker’s strengthened its leadership team with the appointment of Justin Stead as Chairman, bringing significant global brand experience. Bryony Walker was also appointed Commercial Director, reinforcing the company’s strategic direction as it looks to future growth opportunities.
The business pointed to the continued strength of the Walker’s brand – including its partnership with global ambassador Sir Andy Murray – as a key factor underpinning confidence in its long-term prospects.
Commenting on the results, Managing Director Nicky Walker said the company had anticipated a more difficult trading environment following a period of sustained post-pandemic growth.
“The Board took a deliberately cautious outlook for 2025,” she said. “We were prepared for market headwinds and tough trading conditions, but the unprecedented convergence of US tariffs, shifting customer inventory patterns, continued governmental wage regulations and a significant double-digit year-on-year increase in wholesale butter prices impacted our bottom line.
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“While the external trading environment remains both challenging and complex, particularly regarding geopolitical factors and sector-wide labour availability, we are managing this from a position of historic strength.”
She added that the business remains focused on controllable factors, including operational efficiency and continued investment in both its people and brand.
“Above all, Walker’s will continue to operate as a sustainable, environmentally conscious, family-owned and managed business, based in the Highlands, with continued dedication to baking and bringing our finest quality produce to our much valued and loyal consumers.”
